ISLAMABAD: Pakistan's Prime Minister Shehbaz Sharif criticized global lenders on Thursday for providing billions for the defense of various countries around the world but offering loans "at a very high cost" to developing countries that suffer climate disasters.
Sharif's statement came at the two-day New Global Financing Pact summit in Paris. The Pakistani premier is among 40 global leaders and representatives of international organizations at the summit that aims to boost crisis financing for low-income countries and free up funds to tackle climate change.
Pakistan is counted among the countries that are most affected by climate change. In June 2022, heavy monsoon rains lashed several parts of the country, triggering flash floods that displaced 33 million people, killed over 1,700, and washed away large swathes of crops. Pakistan estimates losses from the disaster to be around $30 billion.
"This is not fair, that on one hand, you are ready to provide everything for the defense of a country or countries," Sharif said at an event, referring to international financial institutions.
"But when it comes to the question of saving thousands and thousands of people from dying, then you have to borrow money at a very high cost," he added.
"Then you have to beg and borrow and deteriorate your already precarious economic situation."
The Pakistani prime minister said the southern part of the world is happy that the northern countries are progressing and that he would like to learn from their valuable experiences.
"But, this must be remembered. If the south is in trouble, then how can the north be in peace," he asked.
The prime minister said unless the world comes up with a mechanism that satisfies the "most vulnerable" and creates harmony in terms of economic justice, "the world will never be at peace."
"It's never too late. Let's stand up and say no to injustice," Sharif concluded.
The Pakistani prime minister's criticism comes at a time when the South Asian country, reeling from a multitude of economic problems that have depleted its foreign exchange reserves and caused record-breaking inflation, is still locked in negotiations with the International Monetary Fund (IMF) for the resumption of a stalled loan program.
Pakistan has taken tough fiscal measures to comply with the IMF's conditionalities. However, the international lender has still not approved its bailout package, which would help unlock $1.1 billion in funds and help Islamabad shore up its foreign reserves.
